External broker reports(aggregated public sources), Ashika Research

Ashika Research

External broker reports(aggregated public sources)

Equity Bottom-Up

Natco Pharma Ltd. (NPL) is a midsized pharmaceutical company with a presence across the pharma value chain. It owns eight manufacturing facilities including six formulations facilities and two API facilities. The company also has a US retail business. Natco is a leading domestic player in the oncology space. NPL's product pipeline consists of drugs,...<div class="content-highlight">Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</div>

Natco Pharma Ltd. (NPL) is a midsized pharmaceutical company with a presence across the pharma value chain. It owns eight manufacturing facilities including six formulations facilities and two API facilities. The company also has a US retail business. Natco is a leading domestic player in the oncology space. NPL's product pipeline consists of drugs,...Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Ashika - Stock Picks - Natco Pharma Ltd. - June 2021

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<a href="https://www.smartkarma.com/entities/gland-pharma-ltd" target="_blank" data-smartkarma-citation="entities:29723:1" rel="noopener">Gland Pharma (7172753Z IN)</a> aims to raise around US$900m in what would be one of India’s largest IPOs in 2020. The company was established in 1978 by P.V.N. Raju. KKR invested in the company in 2014 and <a href="https://www.smartkarma.com/entities/shanghai-fosun-pharmaceutical-group" target="_blank" data-smartkarma-citation="entities:8045:1" rel="noopener">Shanghai Fosun Pharmaceutical (Group) (2196 HK)</a> bought a 74% stake in the company in 2017. Gland Pharma was one of the fastest growing generic injectables-focused companies by revenue in the United States from 2014 to 2019. GP sells its products primarily via a B2B model in over 60 countries, including US, Europe, Canada, Australia, and India. It also operates a B2C model in India.GP’s revenue has grown at 28.78% CAGR over FY18-20 and was up another 29.4% in 1Q21. At the same time, PAT margins have increased from 19.2% in FY18 to 34.2% in 1Q21. Thus, PAT has grown at 55.15% CAGR and was up another 70.6% in 1Q21. However, the company hasn’t provided a whole lot of details about the revenue breakdown for its products. In addition, not all the pre-IPO shareholders will be locked-up post listing.

Gland Pharma (7172753Z IN) aims to raise around US$900m in what would be one of India’s largest IPOs in 2020. The company was established in 1978 by P.V.N. Raju. KKR invested in the company in 2014 and Shanghai Fosun Pharmaceutical (Group) (2196 HK) bought a 74% stake in the company in 2017. Gland Pharma was one of the fastest growing generic injectables-focused companies by revenue in the United States from 2014 to 2019. GP sells its products primarily via a B2B model in over 60 countries, including US, Europe, Canada, Australia, and India. It also operates a B2C model in India.GP’s revenue has grown at 28.78% CAGR over FY18-20 and was up another 29.4% in 1Q21. At the same time, PAT margins have increased from 19.2% in FY18 to 34.2% in 1Q21. Thus, PAT has grown at 55.15% CAGR and was up another 70.6% in 1Q21. However, the company hasn’t provided a whole lot of details about the revenue breakdown for its products. In addition, not all the pre-IPO shareholders will be locked-up post listing.

Gland Pharma IPO - High on Growth but Low on Details

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

The company has announced a price range of Rs 426 - 428 per share for its listing with bidding set to open on 6 December and closing on 8 December 2016.  The amended offering document filed on 2 December includes interim financials, but we have not seen projections.  That said, revenue growth decelerated in H1:FY17 and the proposed valuation implies a trailing P/E of 32x. As a result, we would pass on the deal.

The company has announced a price range of Rs 426 - 428 per share for its listing with bidding set to open on 6 December and closing on 8 December 2016.  The amended offering document filed on 2 December includes interim financials, but we have not seen projections.  That said, revenue growth decelerated in H1:FY17 and the proposed valuation implies a trailing P/E of 32x. As a result, we would pass on the deal.

India-based Laurus Labs has filed for a listing on the BSE and NSE, and reportedly plans to raise up to Rs300 crore for debt repayment and general corporate purposes. The company manufactures active pharmaceutical ingredients (APIs) for medications used to treat HIV, Hepatitis C, and cancer. The primary customers are the world’s largest generic pharmaceutical manufacturers. This Insight will provide an overview of the company, and we will follow up with a view of the offering after the announcement of the offering’s terms.

India-based Laurus Labs has filed for a listing on the BSE and NSE, and reportedly plans to raise up to Rs300 crore for debt repayment and general corporate purposes. The company manufactures active pharmaceutical ingredients (APIs) for medications used to treat HIV, Hepatitis C, and cancer. The primary customers are the world’s largest generic pharmaceutical manufacturers. This Insight will provide an overview of the company, and we will follow up with a view of the offering after the announcement of the offering’s terms.

India

NATCO Pharma is a research and development-driven pharmaceutical company focused on complex generics, niche products, and active pharmaceutical ingredients (APIs). It specializes in various therapeutic areas including oncology, cardiology, and diabetology, and also has a Crop Health Sciences division for agrochemical products. The company is headquartered in Hyderabad, India, and was founded in 1981.

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NATCO Pharma (NTCPH IN)

Ashika - Stock Picks - Natco Pharma Ltd. - June 2021

Natco Pharma Ltd. (NPL) is a midsized pharmaceutical company with a presence across the pharma value chain. It owns eight manufacturing facilities...

Ashika Research

Gland Pharma IPO - High on Growth but Low on Details

Gland Pharma aims to raise around US$900m in what would be one of India’s largest IPOs in 2020. Fosun Pharmaceutical bought a 74% stake in the...

Sumeet Singh

Laurus Labs: Final Thoughts

The company has announced a price range of Rs 426 - 428 per share for its listing with bidding set to open on 6 December and closing on 8 December...

Kemp Dolliver, CFA

Laurus Labs IPO Overview

India-based Laurus Labs has filed for a listing on the BSE and NSE, and reportedly plans to raise up to Rs300 crore for debt repayment and general...

Kemp Dolliver, CFA

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